Interesting article about Oil

wanghong

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+ @; D# o; D! H; \6 w( I- ^8 r( uBelow is an Interesting article I found, which says that.....Do not
4 H6 w2 L, S/ D8 C' Y' ]- X2 kexpect much from Crude Oil producers and future is not with the
8 j6 k) v$ A1 H, ycompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
' p0 W; s6 U* c9 ?crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
* T% g2 L8 \1 T, Z( i& L1 n6 K3 {months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


$ ]0 T  U" k4 WThere are several reasons the price of oil is decreasing in the face
' g6 C0 U. c+ A" }; z9 @7 bof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
8 J: ?5 i% F3 \& Z+ Q! d3 Zin the ocean near Brazil. Each of these oil fields has more oil than
3 y0 p% x" w; L9 I  @Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
& r& O. A# e. @: c. vThis is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
7 t3 g3 E1 I* v  Q

4. Production of bio-fuels is beginning to reach critical mass. Bio
; E, }9 |* m& Q* L* Ofuel is being produced from many plants and algae. The production
5 J! M2 Y; |. ?5 F' W* K0 f7 ?potential per acre in some cases is astounding. Many countries are
: C$ j) p5 l* Q4 n: U+ gracing to produce bio fuels.
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# T% U; r! q- I/ U% E. x+ o; \
5. Virtually every restaurant in the US and all food processing plants
6 s3 V) c# A& V+ _" i" Pare now selling their used oil to bio-diesel producers. Every pork,
! A0 @9 F% S  _; M4 C1 p+ Lcattle, turkey and chicken processing plant will soon sell their fat
/ x9 {6 N+ [* eto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
5 u; D% y. u1 p/ m

6. There are 99 nuclear reactors in various stages of planning and
9 A) ~* _  t4 Z4 g9 H- {1 }' Sconstruction around the world at this time. Several hundred more are
1 {1 w  v0 c' A  Qexpected to be built in the future. Much of the energy they produce
will replace oil.
  r% y& \* I$ z

7. Every company in any form of transportaion business is replacing
8 ~( h/ D1 f$ Nolder equipment such as trucks, airplanes, train engines, ships, etc.
- j- p3 `6 g6 y/ E: Jwith new more fuel efficient equipment. Airlines and railway companies
  @4 P$ }% f/ Kare experiencing 20% to 25% better fuel econony with the new
! D- m8 e- Y% Y4 kequipment.
  B7 S3 t/ a' y" X9 y1 w
' y( ?7 `5 B( q
* I: m" W0 Y$ o' K  BAirlines are flying airplanes with bio-fuel. They are finding the bio-
1 z  Q9 R. W$ R3 Lfuel is cleaner and performs better than jet fuel.


9 |1 m* H+ n, o  G; Q- i8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
' G4 z( ^+ `- O5 y& w/ w# uoil.

% k5 `9 f* D3 Y' j
  |, b% O1 A- v7 |9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
3 _6 A- R4 w, R6 g  Boil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


: W5 W2 e- t4 a4 d0 h+ R2 l9 gEach of the above by itself will not make a large difference in the
2 A1 E- k1 `+ Tprice of crude oil but the sum of all of them together is world
# C9 g4 W# @/ L/ N" K8 kchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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' a0 }( r/ Y0 ?$ K7 ^7 h  ~With the above scenario, I still believe that there are under
9 o6 p$ M  L1 ~6 G9 S, Rperformed OIL companies and probably they are yet to get the justified
6 ~9 o, I- v) }. ^- Bvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only